Fabtech Technologies Ltd — Q4 FY26

Fabtech Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TswDFR5m_XE Published: 2 weeks ago

0:01 1 second Good morning everyone and thank you. I'm Vashni Bakti on behalf of Admiral Strategic Advisor. I welcome you all to the Q4 FI26 earnings conference call of 0:08 8 seconds FTC Technologies Limited. Today we are joined by Mr. Ashwin Singh Chief Executive Officer, Mr. Aman Anavkar, Chief Growth Officer, Mr. Karan Doshi, 0:16 16 seconds head investor relations and finance strategy, Mr. Chira Dshi, non-executive director of the company. With this now I 0:24 24 seconds would like to hand over this call to Ashwir to introduce further. Over to you sir. Thank you. 0:31 31 seconds Thank you Vishnavi. Uh good morning everyone and welcome to the Q4 FI26 and FI 26 earning conference call for the 0:39 39 seconds Fab Technologies Limited. Uh this is Ash Singh, Chief Executive Officer of Fapt Technologies Limited. Today joining with 0:47 47 seconds me as Vnavi stated Mr. Aman Anatar who is our chief growth officer, Mr. Taran Doohi head investor relationship and 0:56 56 seconds finance and Mr. Chad Koshi who is our non-executive director. I would like to sincerely thank to all our investors, 1:04 1 minute, 4 seconds analysts and stakeholders for joining us today and for your continued trust and support throughout our journey. FI226 1:12 1 minute, 12 seconds has been a defining and landmark year for Fabech Technologies Limited. Not merely because of the numbers we have 1:20 1 minute, 20 seconds delivered but because of the structural transformation we have undertaken to prepare this company for its next phase 1:27 1 minute, 27 seconds of scale. This year we did not focus solely on growth. We focus on building the foundation for significantly larger 1:36 1 minute, 36 seconds growth across operational architecture, leadership structure, infrastructure, market expansion, capital allocation. We 1:45 1 minute, 45 seconds have concisely aligned the organization for what we believe can be a transformation multi-year growth cycle. 1:52 1 minute, 52 seconds We have built our operating structure and execution capacity not for the present quarter alone but for the scale 2:00 2 minutes we envision ahead. As we move towards increasingly larger market opportunity, we believe this preparedness will drive 2:09 2 minutes, 9 seconds operating leverage, improve cost efficiency and progressively strengthen our structural profitability. In simple 2:17 2 minutes, 17 seconds terms, much of the infrastructure for future growth is already in place and as revenue scales, we expect stronger 2:26 2 minutes, 26 seconds efficiency ratios to hold. FI26 reflects the early validation of this strategy. 2:32 2 minutes, 32 seconds Despite global macroeconomic pressure, our total income grew by 28.4% 2:39 2 minutes, 39 seconds yearonear to rupees 431.33 cr while AIA increased by 18.29% 2:48 2 minutes, 48 seconds to rupees 55.56 cr. More importantly, this growth was achieved while simultaneously investing in future readings. 2:57 2 minutes, 57 seconds A key milestone this year was our strategic equity infusion of approximately rupees 230 crores which 3:05 3 minutes, 5 seconds fundamentally reset our balance sheet and strengthen our long-term capacity for expansion. Our total equity expanded 3:13 3 minutes, 13 seconds to rupees 419.77 cr while cash and bank balance rose sharply to rupees 208.57 3:22 3 minutes, 22 seconds making this the strongest financial position in fab history. This was not just capital risk. It was strategically 3:30 3 minutes, 30 seconds capacity created for the future. Fabech today is an international brand with operating across 60 plus major 3:38 3 minutes, 38 seconds geographies. Our global business continued to be anchored by UE and Saudi Arabia which remains our strategic 3:45 3 minutes, 45 seconds pillar. However, this market must be reviewed together and not independently. 3:53 3 minutes, 53 seconds GCC localization is no longer optional. 3:55 3 minutes, 55 seconds It is a strategic necessity. In these reasons, local presence drive trust, execution capacity and assess. 4:04 4 minutes, 4 seconds Our investment in local subsidiaries, teams, infrastructure are designed to create progressively self- sustaining regional growth engines over time. 4:15 4 minutes, 15 seconds At the same time, our expansion in Kenya has demonstrated extraordinary momentum, reinforcing our belief that Africa can 4:23 4 minutes, 23 seconds emerge as a powerful long-term strategic corridor for Fabech. From a profitingly standpoint, while we reported our 4:31 4 minutes, 31 seconds operating profit for FI26 total net profit is 38.36 K compared to the 46.45 4:39 4 minutes, 39 seconds cr last year. It is critical to evaluate this is in the correct context. FI25 4:46 4 minutes, 46 seconds included 17.85 85 K in exceptional items where FI26 performance is fundamentally 4:54 4 minutes, 54 seconds driven by the core operations in net in net result if you see the 5:02 5 minutes, 2 seconds total impact on operational net profit is crossing 18%. 5:12 5 minutes, 12 seconds Quarterly performance further reinforced the momentum Q4 FI26 was particularly strong with total income raising 22% 5:20 5 minutes, 20 seconds yearonear to rupees 168.24 cr and the quarterly net profit rebounding to 22.06 5:28 5 minutes, 28 seconds cr. This sharp turnaround reflect improving execution strength and provide us with the strong momentum entering FI26. 5:37 5 minutes, 37 seconds Operational discipline has also become sharper. return operating cash flow positive reduced borrowing and significantly strengthened liquidity. 5:46 5 minutes, 46 seconds However, our focus for the next four quarter remains firmly centered on cash and collection while our liquidity position remains strong. Trade 5:54 5 minutes, 54 seconds receivables have risen to rupees 204.34 cr. Accordingly, receivable management is now a strategic operational priority 6:03 6 minutes, 3 seconds with sharper collection led discipline being implemented to ensure that scale is supported by strong cash conversion and healthier working capital side. 6:14 6 minutes, 14 seconds Looking ahead, our order book today and business visibility and execution pipeline continue to remain strong. 6:21 6 minutes, 21 seconds Based on current momentum, we are projecting approximately 25% growth ahead alongside an improvement in pat 6:29 6 minutes, 29 seconds margin towards 9.9% to 10.5% range. Our focus is clear not growth at any cost 6:37 6 minutes, 37 seconds but growth with a strong profitability and sharper capital efficiency and discipline scale. Strategic investment 6:44 6 minutes, 44 seconds and partnerships are integrating web validating our broader capital deployment philosophy while also expanding future optionally. 6:54 6 minutes, 54 seconds We continue to actively evaluate additional opportunities that align with our long-term strategic road map. As 7:01 7 minutes, 1 second Facttech enters a more ambitious growth phase, our leadership structure is also evolving to match this opportunity. The 7:08 7 minutes, 8 seconds transition to executive chairman should not be viewed as a return to the operation but rather as a move towards sharper strategy direction, a strong 7:17 7 minutes, 17 seconds governance alignment and bolder long-term oversight. 7:22 7 minutes, 22 seconds Simply put, management will continue to drive uh execution while the executive chairman structure will help ensure that 7:29 7 minutes, 29 seconds FAP remains strategically aligned towards the right market, right opportunity and the right long-term outcomes. As we enter FI27, we do so 7:39 7 minutes, 39 seconds with confidence, not [clears throat] only because of what we have achieved, but because of what we have structurally prepared to achieve. FI26 was about 7:48 7 minutes, 48 seconds transformation, strengthening our balance sheet, expanding globally, localizing, strategically, and building 7:55 7 minutes, 55 seconds infrastructure for scaling. FI27 will be about acceleration, converting this structural strength into sharper 8:02 8 minutes, 2 seconds execution, stronger profitability and larger global leadership. Thank you once again for your trust, confidence and 8:11 8 minutes, 11 seconds continued partnership. We look forward to building what we believe can be one of the most defining growth chapter in Fabric journey. Thank you very much. 8:23 8 minutes, 23 seconds Yes sir. 8:35 8 minutes, 35 seconds I hope I am audible. I would like to take this opportunity to just introduce Fabech Technologies Limited to our 8:43 8 minutes, 43 seconds audience here and our esteemed investors. 8:48 8 minutes, 48 seconds Fact Technologies Limited has been a design and built company operating in the pharmaceutical, 8:56 8 minutes, 56 seconds healthcare and biotech industries over the last three decades. 9:01 9 minutes, 1 second We have been the sole provider of turnkey solutions with in-house manufacturing capabilities for process, air, and 9:10 9 minutes, 10 seconds water. What I'm displaying on the screen right now is a direct reflection of why companies, clients and partners have chosen FATEC as their service provider. 9:23 9 minutes, 23 seconds Over the last three decades, we have taken the responsibility of taking single accountability, zero coordination 9:30 9 minutes, 30 seconds challenges where we as the design and build partner owns the design, engineering, manufacturing, 9:38 9 minutes, 38 seconds installation, validation, commissioning and ensures that we eliminate all the delays and 9:45 9 minutes, 45 seconds vendor management that takes place in a green field or a brownfield project. 9:51 9 minutes, 51 seconds Now through the experience that we have we have been able to integrate in-house manufacturing capabilities for process 9:59 9 minutes, 59 seconds equipment containment solutions in room partitions utilities such as water and air and ensuring that the engineering 10:08 10 minutes, 8 seconds takes place inhouse. We are the only infrastructure life sciences platform as 10:15 10 minutes, 15 seconds an ecosystem delivering seamless integration and regulatory compliance to all the pharmaceutical emerging markets 10:23 10 minutes, 23 seconds that we operate in through the experience that we have. We focus on regulatory compliance and 10:31 10 minutes, 31 seconds regulatory confidence as a unified approach which ensures that all pharmaceutical emerging markets get 10:39 10 minutes, 39 seconds equal access to affordable medicines without compromising quality. Therefore, 10:46 10 minutes, 46 seconds WHQ, EUGMP, USFDA or UK MH, these are the backbone regulatory guidelines that are followed 10:55 10 minutes, 55 seconds by the FATEC team, be it in design or in execution. 11:00 11 minutes Now, through the integrated design and delivery system that Fabech owns, we are able to deliver cost effective solutions and long-term reliability. 11:13 11 minutes, 13 seconds Now through these three decades we have been able to create an ecosystem the FATIC technologies limited ecosystem 11:21 11 minutes, 21 seconds which allowed us to scale in the pharmaceutical emerging markets of Middle East, North Africa, GCC, 11:27 11 minutes, 27 seconds economical markets such as Africa, Eastern, Western, Central and South. 11:33 11 minutes, 33 seconds Through the start to finish turnkey solutions, we were able to create the ecosystem which delivers the cost effectiveness in our markets. What you 11:42 11 minutes, 42 seconds see on the screen with our joint venture partnerships across the UAE, across the Saudi Arabian regions and the new ones 11:51 11 minutes, 51 seconds across Palmer emerging markets, we have a 100% subsidiary called FTS in UAE, 100% subsidiary in Saudi Arabia called 12:00 12 minutes FATK Saga. We have 33.33% in mark maker which becomes our process OSD 12:09 12 minutes, 9 seconds closed group line division. our own in-house investment of 16% now in TSA 12:17 12 minutes, 17 seconds which allows us to offer water systems across all the pharmaceutical projects and fable with 49% which allows us to be 12:26 12 minutes, 26 seconds a approved vendor for containment solutions giving us access into low volume high value projects such as 12:35 12 minutes, 35 seconds oncology vaccines hormones and many more. Our asset light model enables us 12:43 12 minutes, 43 seconds to focus on speed, quality and consistency without depending on external vendors. 12:50 12 minutes, 50 seconds We are able to deliver clean air, pure water and precision process systems across the projects we deliver. 12:58 12 minutes, 58 seconds Our main goal is to empower nations to build resilient, sustainable and future ready healthcare manufacturing ecosystems as well. 13:08 13 minutes, 8 seconds Now through these from the day that we've gone public our order book and strategic update stands as of what you 13:17 13 minutes, 17 seconds see on the screen right now as of March 31st 2026. I would like to hand over to 13:24 13 minutes, 24 seconds Mr. Karan Dosshi to take you through the order positions the outlook 13:30 13 minutes, 30 seconds and how the global volatility impacted and how we were able to sustain our growth regardless. 13:38 13 minutes, 38 seconds Good morning everyone. Thank you. Our order of march uh stands more than 900 crores you know including our Dubai 13:45 13 minutes, 45 seconds operations uh which you know so which provides a strong revenue visibility for a couple of years from today. Uh our 13:53 13 minutes, 53 seconds global positioning has strengthened you know we are looking at new geographies uh specifically in North Africa. We are 14:02 14 minutes, 2 seconds uh building a scalable and diversified execution platform with more uh 14:09 14 minutes, 9 seconds acquisitions uh outlook positive growth outlook which are basically in our as we already said is a strong out uh pipeline geographic 14:18 14 minutes, 18 seconds expansion and through complex and high value projects. So we today do end to end projects turnkey projects for most of our clients. We are now increasing 14:25 14 minutes, 25 seconds our order sizes. Earlier we used to do I think 30 $40 billion. Today we have orders worth $70 million. Uh our uh we 14:33 14 minutes, 33 seconds have resilient performance amid global volatility. Uh you know even in during this tough times we were able to deliver 14:41 14 minutes, 41 seconds uh the highest sales in the month of March. Uh close to around 150 cr of uh drop that we have delivered in Q4. 14:51 14 minutes, 51 seconds So there has been some challenges but we've able to mitigate those challenges and have been able to successfully deliver our uh Q4 numbers. our wins we 15:00 15 minutes have you know one so we've started we got into animal health segment Saudi we've secured an vaccine and advanced 15:08 15 minutes, 8 seconds fararma projects from Saudi and we fund last projects and projects from Africa uh now headed back to Amen 15:18 15 minutes, 18 seconds so through the initiatives of becoming a local entity in Saudi Arabia just to reiterate what has said the animal 15:26 15 minutes, 26 seconds health segment in medical devices in veterary fields of vaccines and general formulations has been growing across the 15:34 15 minutes, 34 seconds region and we were able to bag not one but multiple projects in the Middle East, North African and Saudi Arabian 15:42 15 minutes, 42 seconds region which allowed us to secure a vaccine fill finish facility and multiple medical device and finish 15:50 15 minutes, 50 seconds formulation projects in the veterary sector simultaneously while our operations became stronger in the Middle 15:57 15 minutes, 57 seconds East North Africa region. We became extremely strong like Mr. Rashini said in Kenya and other African regions with 16:05 16 minutes, 5 seconds large scale pharmaceutical and infrastructure projects. This has allowed us to ensure that our positioning in the market as an 16:13 16 minutes, 13 seconds integrated life sciences solutions platform stays robust and clients saw 16:21 16 minutes, 21 seconds this through our resilient performance amidst the entire global situation. 16:28 16 minutes, 28 seconds Right now with the war that was going on, we were able to navigate the logistics disruptions, the freight challenges that took place. There were 16:36 16 minutes, 36 seconds cost pressures internally that were happening, but there was minimal impact on the overall performance. Our teams, 16:44 16 minutes, 44 seconds our capable teams were able to demonstrate robust execution timelines and models and there was internal operational resilience. 16:55 16 minutes, 55 seconds What you see on the screen is a highlight or a reference point of the projects that we have won this year in 17:03 17 minutes, 3 seconds West Africa, in Saudi Arabia, in North Africa which were large value projects 17:10 17 minutes, 10 seconds which are strengthening the local capability of pharmaceutical production. 17:16 17 minutes, 16 seconds We had a tablet capsule facility in West Africa which was a $7.05 05 million order which is the turnkey supply 17:24 17 minutes, 24 seconds installation commissioning of the entire infrastructure with an execution timeline of 23 to 27 months. It 17:32 17 minutes, 32 seconds positioned us extremely well in West Africa where now our pipeline in the region is growing even stronger. 17:39 17 minutes, 39 seconds It helps me to say that with operation green field with FATEC green field green 17:46 17 minutes, 46 seconds shield and with the partnerships with pote that we have announced recently we are able to increase our ticket sizes 17:54 17 minutes, 54 seconds across the region with hybrid solutions not just focusing on pharmaceutical turnkey but also pre-engineered 18:02 18 minutes, 2 seconds buildings and solar integration into the entire infrastructure for our clients. 18:09 18 minutes, 9 seconds The other projects in Saudi Arabia with animal vaccines of $7.8 million again with turnkey clean rooms, HVAC, MEP and 18:17 18 minutes, 17 seconds utilities from start to finish. It helped us enter the market with a very strong timeline of 11 months from start to handover. 18:28 18 minutes, 28 seconds in North Africa with the veterary facility with 49 to 52 kores total. It is a development of an EUGMP compliant 18:36 18 minutes, 36 seconds veterary formulations facility again targeted for completion by Q1 of FY27. 18:45 18 minutes, 45 seconds Now coming to the operational excellence future readiness and execution reports that our investors are waiting for. I 18:53 18 minutes, 53 seconds would hand over to Karan to talk about the comparisons between FY26 18:59 18 minutes, 59 seconds FY25 and what the year-on-year changes have been. Thank you A. So for the year 19:06 19 minutes, 6 seconds FI26 we've uh recorded a total income of around 431 KS uh which was increased by 19:14 19 minutes, 14 seconds 28% over previous year of 335 crores on a consolidated basis. Our ebita has increased from 46.97 crores to 55.56 crores a jump of around 18.29%. 19:25 19 minutes, 25 seconds Our operational pad has increased from 31.27 crores to 36.6 crores which is an increase of 17.4 uh%. Our cash and bank 19:34 19 minutes, 34 seconds balance has increased from 35 crores to 208 crores which is a 5x jump in our position. This is primarily on account of an IPO which we did during the year. 19:44 19 minutes, 44 seconds Similarly, our equity has increased from 173 crores to 419 crores. Uh again, you know, it is a reason for increase in our 19:53 19 minutes, 53 seconds uh IPO during the year. Our overall net profit for the year has been 38.36 crores. Uh there has been an adjusted we 20:01 20 minutes, 1 second have the operation is adjusted for an item exceptional item of TSA for previous FI25 which was amounting to 20:08 20 minutes, 8 seconds 17.85 85 crores which was one time item and around 1.77 crores of uh this year 20:15 20 minutes, 15 seconds exceptional item our revenue by growth and scale consolidated total income increased by 28.4 4 crores specifically from our UAE operations and Kenya 20:24 20 minutes, 24 seconds operation. UAE became the largest market has shown the largest growth of contributing to around 126 crores followed by Saudi which is around 82.7 20:32 20 minutes, 32 seconds crores. Kenya revenue grew by 236 crores to 43.24 20:40 20 minutes, 40 seconds crores. We became cash positive from a negative 36 crores to a positive 50 lakhs though you know just positive but 20:48 20 minutes, 48 seconds that has been a great achievement for the team. We've reduced our debt from 54 crores to 42 crores. Current borrowings from 54 crores to 42 kores. Uh know 20:57 20 minutes, 57 seconds there could be reasons why you know we though we did an IPO because we are in uh we did not became a debtree by the year end. The idea idea here is you know 21:06 21 minutes, 6 seconds there were few loans few uh debt which is you know back to dollars and where our rates are better than we have. 21:13 21 minutes, 13 seconds Therefore we pursue continue to do our current borrowings in PCFC terms in US dollar terms. strategic expansion FY20 21:21 21 minutes, 21 seconds expanded beyond core execution through new projects scalable infrastructure and long-term capacity building as I said earlier you know earlier we used to be 21:30 21 minutes, 30 seconds uh picking up orders and delivering orders in 30 to 40 however you know I think uh I think we've got few orders 21:37 21 minutes, 37 seconds which are more than 50 cr 60 crores u GCC localization 21:44 21 minutes, 44 seconds uh UAE has increased from 126 road to 82.72 crores tren local expansion we 21:52 21 minutes, 52 seconds have now two subsidiaries in Dubai one subsidiary in KSA one JV in KSA uh to 21:59 21 minutes, 59 seconds address various markets in uh Saudi receivables in Dubai is 37 crores whereas in Saudi it is around 61 crores 22:07 22 minutes, 7 seconds this is in you know uh typically because of last heavy quarter billing so now it would be great if we could 22:15 22 minutes, 15 seconds open the questions here I can see some in the chat box already. Uh I hope yeah. 22:23 22 minutes, 23 seconds Yes. So Amil if you can mediate this. 22:26 22 minutes, 26 seconds Thank you so much sir. Investors we are starting with the Q&A session now. I request you all to raise your hands or drop your questions in the chat box. So 22:35 22 minutes, 35 seconds sir first would you like to take the question which we have in the chat box and then we can continue with the other investors. 22:42 22 minutes, 42 seconds Yes Mr. Vikas Gupta has posted the first question while the presentation was ongoing. Congrats on posting the good results in this challenging micro 22:50 22 minutes, 50 seconds environment. However, from investor point of view, we are still far below expectations. ESP stock prices sitting one/ird down from its high and those brought at the top are caught off. 23:02 23 minutes, 2 seconds Margins have shrunk because of revenue increase despite revenue increase. what is being done to have consistent high 23:09 23 minutes, 9 seconds margins and more linear business and to get investors confidence back. So ideally our margins are in line when we you know take the projects. It is more 23:18 23 minutes, 18 seconds of a combination of a portfolio mix. Uh countries like Africa uh there are slight pressure on the margins. However, 23:26 23 minutes, 26 seconds if we see at our you know contribution margins they are at 43.8 they are still healthy compared to previous year which was around 45.9%. 23:36 23 minutes, 36 seconds uh typically uh we do not see a challenge in our margins. It's more like a portfolio mix. So the projects little 23:45 23 minutes, 45 seconds little lower margins in few geographies is the result of this uh FI26. I think we should look at a bigger picture. If 23:54 23 minutes, 54 seconds you see when when the things are not in place and we would have lot of client commitment in spite of having uh lot of 24:02 24 minutes, 2 seconds turbulence geographically and politically we could able to fulfill commitment made with the clients. This is this is one one of the biggest 24:11 24 minutes, 11 seconds achievement which we could achieve last year. Yes, definitely there was an impact because of the logistic cost. 24:17 24 minutes, 17 seconds Definitely there was impact because we were not getting visas and you know not able to we could not able to depute our 24:24 24 minutes, 24 seconds team from India. So we had to source people from the local market like Saudi, Algeria, uh Dubai. So definitely that is 24:33 24 minutes, 33 seconds having some impact but I think we should look at the positive side that we've fulfilled the commitment. 24:39 24 minutes, 39 seconds There is one more question. Perfect. uh what has been the impact estimate from ongoing US Iran war on Q4 results top and bottom line and what's been expected 24:48 24 minutes, 48 seconds in the coming months if this keeps persisting how much percentage order book is expected to grow in this year firstly addressing the previous question 24:56 24 minutes, 56 seconds Mr. Vikas Gupta both of your questions are very fair. Firstly, there have been three key factors which have impacted 25:04 25 minutes, 4 seconds the operational profit that have been mentioned here where the margins have shrunk despite revenue increase right the execution costs have increased due 25:12 25 minutes, 12 seconds to the remobilization like Mr. Rashmi Singh mentioned amidst these global geopolitical disruptions 25:19 25 minutes, 19 seconds we maintained client commitments can you go on mute please 25:26 25 minutes, 26 seconds there has been an increase in the RMC cost as well which rose faster than the revenue due to the global supply chain pressures now simultaneously we have 25:35 25 minutes, 35 seconds been focused on capability buildup because the order book pipeline is growing there were active strategic 25:42 25 minutes, 42 seconds calls that factor has taken to focus on a market penetration strategy in cost-effective markets such as Africa as 25:50 25 minutes, 50 seconds well and uh we would be fair to say that this strategy has allowed us to win more 25:56 25 minutes, 56 seconds projects and increase the order pipeline also focus on internal margin development which you will see in the quarters to come. 26:05 26 minutes, 5 seconds putting a specific number on the percentage of order book expected to grow. You can currently see we've sustained and grown through the order 26:13 26 minutes, 13 seconds pipelines that have been committed and also surpassed what we were committing before. 26:19 26 minutes, 19 seconds We expect to grow with you know around 25 to 30% as mentioned by this around here 26:28 26 minutes, 28 seconds there are attendees with their hands uh raised Mr. Dil Zeri. 26:35 26 minutes, 35 seconds Yeah. Are we audible? 26:44 26 minutes, 44 seconds Hello. Can Can you hear me, sir? Hello. Yes. Yes, we can. Yeah. Yeah. Yeah. Good morning, sir. 26:49 26 minutes, 49 seconds Thank you so much for taking my question, sir. Uh, so sir, yeah. Just wanted to know I think you've given a clearcut guidance of 25 to 30% growth 26:58 26 minutes, 58 seconds but what is the risk because of the situation in Middle East and maybe it's maybe escalating also because it's a 27:05 27 minutes, 5 seconds day-to-day situation right like so I would uh what would be the impact of it in Q1 will we have similar margin hurt 27:14 27 minutes, 14 seconds in Q1 or and how would that impact our overall user 27:22 27 minutes, 22 seconds I would Firstly, in terms of balancing the order book, while we were exposed or concentrated in the Middle East as of 27:30 27 minutes, 30 seconds last year, there is a lot of positive balance that has come in the order pipeline from Africa and other markets 27:37 27 minutes, 37 seconds which have not been impacted in with the war currently in the Middle East. With the scenario in the Middle East, be it Saudi Arabia, be it the projects ongoing 27:46 27 minutes, 46 seconds in Iraq or in UAE, there has been a turbulent environment where our focus has been more on ensuring that we stand 27:54 27 minutes, 54 seconds by our clients with the ongoing deliveries and installation commissioning ongoing. We were fortunate 28:01 28 minutes, 1 second enough that during the ceasefire we were able to deploy the right amount of members for the installation that is 28:09 28 minutes, 9 seconds needed on site because these are critical environments that we are dealing with critical not in geographies but in projects that we're currently 28:17 28 minutes, 17 seconds executing in but would you like to add on yeah I think we should look at it the way we 28:25 28 minutes, 25 seconds said that diversifying in more than 62 plus countries that clearly shows the mitigation plan in case you know one 28:34 28 minutes, 34 seconds geography is impacted because of uh some reason other geographies are always open and then we have to balance it out that 28:42 28 minutes, 42 seconds how we can maintain our profit margins you know what to add also to add if you look on R&G 28:52 28 minutes, 52 seconds cost we still procured in India so I think uh the challenges is more on the freight piece so Delivery and execution 29:00 29 minutes can get delayed but the impact on cost could be very small you know which will get compensated with the writing dollar 29:07 29 minutes, 7 seconds because our all most of the revenue is in a dollar ton so we do not see a material impact on our financials 29:15 29 minutes, 15 seconds because the cost increase in rate will get compensated against a dollar price. I I hope we have answered your question. 29:23 29 minutes, 23 seconds No no so just for that regards like so if our execution gets delayed so we will be you know our cash will be blocked for 29:30 29 minutes, 30 seconds a higher point of time our revenue will be recognized later on and what you and the cost maybe not right now but for what other future raw material also our 29:39 29 minutes, 39 seconds cost will increase right so that will have a impact on margin right or are you saying that it will not have an impact on margin 29:47 29 minutes, 47 seconds no you're right dash that's spot on but something that I'd like to shed light on here is that in regions in UAE in Saudi 29:56 29 minutes, 56 seconds Arabia we have on ground team currently that is taking care of the installation and commissioning ongoing so the 30:03 30 minutes, 3 seconds execution side of things we're well taken care of because we were able to preempt certain situations which told us that we have to localize the second 30:12 30 minutes, 12 seconds point that you rightly mentioned in terms of the RMC increase because raw materials in India are also going up that is fair point and our clients are 30:21 30 minutes, 21 seconds understanding enough to know that the global situation is going to impact the agreed upon prices. So there will be variation in the contracts and the 30:29 30 minutes, 29 seconds values. So our side of the business will be balanced where the clients will understand of the are going to be 30:38 30 minutes, 38 seconds understanding of the increase in RMC's that are happening on our side. 30:42 30 minutes, 42 seconds Yeah, it was that's what I wanted to ask if we have the ability to pass on the cost then our margin. Absolutely. Yeah. And so with regards to Yeah. 30:50 30 minutes, 50 seconds Sorry. [clears throat] Sorry. Sorry to cut you. I would not say pass on the cost to the client but it would be understanding of the situation. 30:58 30 minutes, 58 seconds Therefore, the client takes these situations into consideration when awarding us the future projects as well. 31:06 31 minutes, 6 seconds So again this becomes more of a strategic decision for us more than anything where we sit across the table and we discuss this with the client. 31:15 31 minutes, 15 seconds If I may just like is it kind of like okay maybe we take a smaller hit in one project but when the other project comes in we get a higher margin or is that 31:24 31 minutes, 24 seconds like how we look at it or because from what I want to just understand that uh so that current like because here we 31:32 31 minutes, 32 seconds might have a bit of lower margins but uh going forward we will have better margins because that our thing is already into consideration how 31:40 31 minutes, 40 seconds I would say I would say that this would be more variable project to project where in certain areas depending on the 31:47 31 minutes, 47 seconds scope of work that we're undertaking, we would prioritize the client. But that being said, we always prioritize the 31:55 31 minutes, 55 seconds board, the investors and the retail investors that are partnered with us. So I would not say that 32:04 32 minutes, 4 seconds I would say we take a balanced approach to the entire project. 32:08 32 minutes, 8 seconds Okay, fair enough. Uh just last question from May in terms of order books sir like any kind of uh target that you know 32:16 32 minutes, 16 seconds these many orders we want to win this year like uh if you would like have internally decided 32:24 32 minutes, 24 seconds I would rather shed light on the hot lead pipeline right because we're currently dealing with close to I would 32:33 32 minutes, 33 seconds say 200 million odd USD with offers in the market right and This pipeline is 32:40 32 minutes, 40 seconds growing further which is being sanitized and validated. Simultaneously there is an internal target that has 32:47 32 minutes, 47 seconds been given to our sales direction and the sales team which I would not disclose here because they would also come to know but that surpasses of what 32:56 32 minutes, 56 seconds we've been announcing in the market. I would also like karan to add on here of what our current pipeline looks like, what the timeline of those executable 33:04 33 minutes, 4 seconds orders are and how we will be choosing to add on firm. 33:09 33 minutes, 9 seconds So uh as we said that 900 cr is the current pipeline which we intend which we will deliver in next 18 to 24 months. 33:17 33 minutes, 17 seconds So uh having said that uh that is the guidance which as on date we can give to the market but internally we have 33:25 33 minutes, 25 seconds targets for our uh current years being a future numbers which we are uh not able to disclose yet. 33:32 33 minutes, 32 seconds Okay, fair enough. And this like the 200 billion. So how does this fruit does it take like a lot of time for orders to 33:40 33 minutes, 40 seconds come in like five months, six month, what's the average like order wins that you know we can expect like or when does it come in? Like if you've started 33:48 33 minutes, 48 seconds bidding for one contract like right now you're saying that a hot uh lead of 200 million. So the results would be declared in five months, 6 months like 33:56 33 minutes, 56 seconds so when can we just see a chunk of order inflow coming in? That's just what so something that we've learned throughout this journey of becoming 34:05 34 minutes, 5 seconds public commercial is that our investors want stable quartertoquarter understanding and growth in the market 34:12 34 minutes, 12 seconds right we have been reiterating that we are a very lumpy business that our quarter four surpass all the quarters and that we are not a quarterto quarter 34:20 34 minutes, 20 seconds story QSQT right but we have realized that the order conversion timelines are 34:29 34 minutes, 29 seconds more variable on the client's side dependent on civil infrastructure readiness. That is what impacts our side 34:36 34 minutes, 36 seconds of the business. Now the internal strategy has become 34:43 34 minutes, 43 seconds to control these timelines by controlling the pre-engineered building structures as well and bidding for these 34:51 34 minutes, 51 seconds projects. So I would say the order conversions that she have already started right there are projects in North Africa which we've already closed. 35:00 35 minutes There are projects in the western region of Africa which we've already closed in the Middle East and the UAE team is already closing. So this convergence has 35:09 35 minutes, 9 seconds started from Q1 of this year but that is a booking side not the billing side. 35:15 35 minutes, 15 seconds Something that we always like to highlight is the billing is different than the booking. 35:20 35 minutes, 20 seconds Right? And now the billing is more dependent on the readiness of the client to accept the materials that we supply 35:28 35 minutes, 28 seconds or we export and then the installation that we that we do. Now to mitigate that like I said we've started going after 35:35 35 minutes, 35 seconds the PEB structures. We started going after the sustainable energy infrastructure integration in our projects. That helps us in two things. 35:43 35 minutes, 43 seconds One is the ticket size of each project goes up and number two we are able to control the timelines of the entire 35:50 35 minutes, 50 seconds project. So what where we used to be at 24 to 27 months per green field project 35:57 35 minutes, 57 seconds now we're able to reduce that by let's say 20%. 36:02 36 minutes, 2 seconds Okay fair enough. So fair enough. So when we get all the scale are we announcing them on the exchange because I don't think we are actively announcing 36:09 36 minutes, 9 seconds like uh billing doesn't matter if we run the project I think we should keep on announcing them just suggestion 36:16 36 minutes, 16 seconds so something that we saw was uh we actively participate and selectively in certain exhibitions where new recent 36:25 36 minutes, 25 seconds orders are getting signed off but we're not in a position to be announcing them until we receive the LC's per se. 36:32 36 minutes, 32 seconds Contracts are one thing but as per internal guidelines we don't announce projects till we receive the LC's because that is a sign of clear start of 36:41 36 minutes, 41 seconds projects where we start receiving the money until we see the money or smell the money we don't go after announcements but we are if you've seen in the last year the west Africa 36:49 36 minutes, 49 seconds projects have been announced the east Africa projects have been announced Saudi projects have been announced and we're doing that 36:56 36 minutes, 56 seconds so in nutshell Mr. Rashid uh in nutshell looking at our uh conviction and commitment uh in last quarter you know 37:05 37 minutes, 5 seconds in that disruptive environment uh we can say that our conversion is now getting 37:11 37 minutes, 11 seconds improved it is now 11% and it is reaching and hitting to around 16 to 17% of the hot lead and definitely in coming 37:21 37 minutes, 21 seconds uh quarters you will see huge order booking uh oh that that that's really great to you. 37:28 37 minutes, 28 seconds That's really great. That's what we hope for sir. Thank you so much sir. Thank you D Mr. Ankit Gupta and Mr. 37:34 37 minutes, 34 seconds Bhavika Singh we thank you for waiting I think the floor will be yours to us. 37:40 37 minutes, 40 seconds Yeah sure thanks for the opportunity sir on the uh like on how are we able to you 37:48 37 minutes, 48 seconds know pass on the prices [snorts] or the disruption because of the war the price increase that we do have that we would have seen in the raw material. So how 37:57 37 minutes, 57 seconds are they you know embedded in our uh contracts with the customers if you can talk about this a bit and you know uh 38:04 38 minutes, 4 seconds like are customers also accepting the same. 38:08 38 minutes, 8 seconds Just as an example if we are finalizing the projects in 2025 at X dollar or X 38:14 38 minutes, 14 seconds INR and this increases by let's say 50 to 60%. Then we have a variation clause 38:23 38 minutes, 23 seconds where we sit down with our clients and we explain the entire situation to them. 38:27 38 minutes, 27 seconds Now obviously all of our clients have been in business for decades. They themselves understand that while they 38:34 38 minutes, 34 seconds are also importing materials, freight prices have gone up absurdly. 38:41 38 minutes, 41 seconds The impact of oil prices has impacted manufacturing industries. So they are very sensible in terms of alignment. 38:52 38 minutes, 52 seconds Something that we mentioned before uh Ankit our business is built on relationship and experience. So clients also respect 39:01 39 minutes, 1 second that and when we discuss variation with them it is a very sensible discussion and not an argument. Our price has increase this much so what will you pay? 39:11 39 minutes, 11 seconds It is about okay when can we get the deliveries of the project because timelines and installation is more important than the variation because when the project gets elongated the 39:20 39 minutes, 20 seconds client has to take a call whether he will wait for another year until the prices actualize or he will sit with us 39:26 39 minutes, 26 seconds and agree on certain values so that we can continue the consistent progress of the project. That is why there is an 39:35 39 minutes, 35 seconds agreeable nature of the variation clause. 39:40 39 minutes, 40 seconds But but but it's part of the uh contract that we file right like if there is any at the same time I would like to say 39:48 39 minutes, 48 seconds there is also a clause which talks about the variation postdetailed engineering which protects us in a way that all the 39:55 39 minutes, 55 seconds items that were post detailed engineering from the bill of quantities are agreed upon at the net present 40:02 40 minutes, 2 seconds value. So it is embedded in the contract which protects both the client and us. 40:08 40 minutes, 8 seconds So here Ankit if you see we are not executing only one project for a client. 40:13 40 minutes, 13 seconds What we focus that what kind of a client relationship and client management we have uh you know so that client should 40:21 40 minutes, 21 seconds also listen to us and equally when we are talking as a partnership they understand they understand the variation we talk about scope we talk about 40:29 40 minutes, 29 seconds specifications in case if there is a change and most of the time this understanding helps to strengthen our 40:37 40 minutes, 37 seconds relationship with the uh client in the market. 40:41 40 minutes, 41 seconds Okay. Okay. Thanks for that sir. So secondly on the uh on a 900 cr order book can you give a broad geographic 40:49 40 minutes, 49 seconds split of the same you know how much is from which geography if you can with that 40:57 40 minutes, 57 seconds I'll just pull up the data meantime [clears throat] you can continue to just to qualitatively answer that it is split 41:03 41 minutes, 3 seconds between UA Saudi Arabia Iraq uh Kenya uh other parts of Africa as well northern 41:10 41 minutes, 10 seconds Africa which is Algeria Morocco uh some parts Egypt, some parts of Ethiopia. So there is a split of the exposure across 41:18 41 minutes, 18 seconds the region. While we will give you the exact numbers in a minute. Um I hope that answers the geography issue. 41:27 41 minutes, 27 seconds Sure. So and given how the you know uh the war impact is there in certain parts of the geographies and in fact a large 41:35 41 minutes, 35 seconds part of the geographies have you seen any you know customers coming back to us for delay in the projects or in in fact 41:42 41 minutes, 42 seconds you know cancelling the projects any uh two and four discussions we have had with them. Fortunately enough, uh this 41:51 41 minutes, 51 seconds situation has not arose yet and we don't expect it to because even clients and the nations understand that 41:57 41 minutes, 57 seconds pharmaceutical independence is needed for situations like this. If the war worsens and we we expected we expect the 42:06 42 minutes, 6 seconds up and down both that pharmaceutical independence is needed to mitigate their internal risk and protect their 42:13 42 minutes, 13 seconds population. So it has turned around and there are more inquiries now coming up for the pharma sector for the healthare 42:20 42 minutes, 20 seconds sector which talks about how fast can we deploy and how quickly can we get a facility up and running because if new 42:28 42 minutes, 28 seconds wars come up right then we have to protect ourselves. So the conversation has gone in the other direction. 42:35 42 minutes, 35 seconds Sure. So uh I think we need to understand one more thing that uh uh we are in the market since ages right and 42:44 42 minutes, 44 seconds we understand the geography disruption not in terms of only war. So for example if you take the case of Egypt where the 42:51 42 minutes, 51 seconds devaluation hit the market okay so we cannot depend only on one economy we are diversified in multiple geographies to 43:00 43 minutes compensate this kind of a risk and this is not for the first time. Sometimes the scale is different but these challenges 43:07 43 minutes, 7 seconds are available in the market and we should foresee how to mitigate that you know in time. 43:13 43 minutes, 13 seconds Sure. Sure. This this last question on the uh on our billing currency. So like for for our customers in Middle East I 43:23 43 minutes, 23 seconds mean in our region uh so how or across the geographies what is the billing currency for us? Is it the local 43:31 43 minutes, 31 seconds currency that we bill in or No, it's it's LC back payment terms 43:38 43 minutes, 38 seconds always and it's always in USD currently which we are currently having discussions with our finance teams and 43:46 43 minutes, 46 seconds leaders in the market and the board we may move to euros depending on the situation with the war obviously but 43:53 43 minutes, 53 seconds never in local currency because as you know pharmaceutical emerging markets that we operate in um currency can get devalued dollar remains strong. Yeah. 44:03 44 minutes, 3 seconds Okay. Okay. Okay. Thank you and thank you. 44:09 44 minutes, 9 seconds Just to address there are three questions by Harsh Vikas and Mr. Du. Uh could you uh sorry Pavik I'll just quickly address them. Could you please 44:18 44 minutes, 18 seconds talk about reasons for delay in deploying IPO funds and also what is the strategy for deploying these funds? 44:23 44 minutes, 23 seconds Number one um I would not say delay it's an active cause. The due diligence process is ongoing with our JB and 44:29 44 minutes, 29 seconds acquisition in the west that has been under discussion. There are mitigations that were taking place while while we're 44:37 44 minutes, 37 seconds bidding for projects in this region. Uh the acquisition has yet not gone through because we want to be sure of where we're deploying the money. Number two, 44:45 44 minutes, 45 seconds the talent acquisition is ongoing, right? uh I would not say I would say a specific chunk of the IPO proceeds is 44:54 44 minutes, 54 seconds going into increasing internal capability and making the internal stream extremely strong. So talent acquisition is where there will be deployment of these funds. Uh Mr. 45:06 45 minutes, 6 seconds Apart from that you know uh we normally draw down our funds and for specifically for working capital uh we draw down PCFC 45:14 45 minutes, 14 seconds that is pre and post shipment credits from the banks uh wherein the payment has to be done from the customers uh 45:21 45 minutes, 21 seconds collection in those cases this is more of a technical problem where we have to you know get funds from our uh US uh c 45:30 45 minutes, 30 seconds from our customers in US dollars and we have to repay that lend lending lines in uh TS. So we use lending lines because 45:38 45 minutes, 38 seconds we get uh so for plus 200 pips the interest rate. So which is much favorable for us. Uh and secondly in 45:47 45 minutes, 47 seconds first quarter after the IPO there was a technical reason wherein you know we the company was uh the monitoring agency did 45:57 45 minutes, 57 seconds not allow the 50 crores of working capital to be reimbursed. They said you need to utilize it from the monitoring account itself which the management has 46:06 46 minutes, 6 seconds started doing from this quarter. So it has been a little bit more technical reason but yeah so we have been now cautious of those uh practices and we've 46:14 46 minutes, 14 seconds started implementing utilization from the monitoring account. 46:18 46 minutes, 18 seconds We like bhavika you can ask your question we'll come to the ones in chat box after this. 46:25 46 minutes, 25 seconds Yeah thank you for the opportunity. So I think most of my questions have been answered but uh just to get more clarity on your revenue recognition part uh 46:34 46 minutes, 34 seconds given the long execution cycle and there is like a quarter on quarter difference. 46:39 46 minutes, 39 seconds So how a person can see like uh is it a like how we do the revenue recognition along with that also as there is a 46:47 46 minutes, 47 seconds volatility in the margin side also. So can you uh give us understanding how the business work like how the billing and 46:55 46 minutes, 55 seconds everything happens uh so can we can have the understanding [clears throat] of it in simplified terms very fair question I 47:03 47 minutes, 3 seconds think all the other investors are also parlay in this u number one how the revenue recognition cycle is formed when we finalize a project the first step 47:12 47 minutes, 12 seconds that happens is during the kickoff we start with the detailed engineering or the engineering cycle this defines the bill of quantity 47:20 47 minutes, 20 seconds based on which we start procurement of the materials. Once the client's civil site is ready, we start shipping the 47:27 47 minutes, 27 seconds materials in a phased format as per the requirement of the site. So be it HWAC, piping, electrical cable trays, uh clean 47:36 47 minutes, 36 seconds room partitions, machineries, flooring etc. Based on supplies, we have a draw down model with payment terms which with 47:44 47 minutes, 44 seconds payment terms which are covered by the LC's. So revenue recognition takes place on project progress number one. Number 47:52 47 minutes, 52 seconds two you mentioned margins volatility and that is again if you see the exposure in certain premium markets the margins have 48:00 48 minutes been stable and there has been an active strategic core for market penetration that we've taken in cost effective 48:08 48 minutes, 8 seconds markets. Now the volume of those businesses when while they increase the margins will get balanced out in the near future. Um revenue recognition. 48:18 48 minutes, 18 seconds So revenue recognition the complete revenue recognition is based on the bill of lighting B. So once we uh submit our 48:26 48 minutes, 26 seconds to build uh leting against the LC in the bank that time we recognize the remain and the most important question Babika 48:35 48 minutes, 35 seconds that you mentioned there quarterto quartarter changes that have been expected and which we have also preempted our investors for that we are not a quarter-to-arter business but at 48:43 48 minutes, 43 seconds the same time we understand the sentiment and we're trying to make each quarter balanced and sensible for investors to predict the market. Now we 48:52 48 minutes, 52 seconds are doing this by two means. One is making a very strong order pipeline and number two bidding for the pre-engineered building and the civil 49:00 49 minutes infrastructure which will help us control the supply uh scope of work from start to finish of the civil part as 49:07 49 minutes, 7 seconds well. So this will give us more predictability in each quarter. I hope that addresses pavika your question. 49:15 49 minutes, 15 seconds Yeah. Um uh the second question is regarding uh as I think the current order pipeline which we have is mainly 49:24 49 minutes, 24 seconds from the pharma, healthcare and biotech are the management view to diversifying in other sectors because I think the 49:31 49 minutes, 31 seconds need for uh the dunkey projects arise in other segments sectors also. So is there any view of the management or we are 49:40 49 minutes, 40 seconds just focusing on this? Currently there are multiple hats that are being worn by the management and I would say 49:47 49 minutes, 47 seconds Mr. Rashuni as well. Um one focuses on ring fencing our markets focusing on the pharmaceutical emerging markets and 49:55 49 minutes, 55 seconds ensuring that our pipeline for pharma healthcare and biotech remains full and executable for the decades to come. 50:02 50 minutes, 2 seconds Simultaneously the other hat being worn by the board and the strategic guidance is not averse to not diversifying. I would say diversification is always in 50:11 50 minutes, 11 seconds the plans and the markets of data centers, semicon, microchips, nuclear, aerospace, everything is growing. Our 50:19 50 minutes, 19 seconds plate is currently full but we're increasing the size of the plate as well. I hope that answers what you've been asking. 50:27 50 minutes, 27 seconds Uh and what's the execution timeline of the current order book which we have uh like uh by when we can expect it to get convert fully? 50:35 50 minutes, 35 seconds 18 to 24 months. 50:38 50 minutes, 38 seconds Okay. And just last one more understanding as we have one more are entity listed uh u pept clean room 50:45 50 minutes, 45 seconds technology. So what's are do we do any kind of trans because I think they are into just clean rooms. So do we procure 50:53 50 minutes, 53 seconds from them or what's the if you can give me the understanding of the business how this works. 51:00 51 minutes So something called RPT related party transaction does take place in our ecosystem as well. Fabech Technologies Clean Rooms Limited FTCL 51:09 51 minutes, 9 seconds we do procure close to 11% of our current uh procurement of clean room panels from them. Uh simultaneously 51:17 51 minutes, 17 seconds there's also air handling units that FTCL produces which we also procure from an entity called Advante and that would 51:24 51 minutes, 24 seconds be another about 15%. So that's the total breakup of what we procure from our related entities. 51:32 51 minutes, 32 seconds And uh do we for the same products do we uh go for the like open market or uh we are suffised from the internal recur? 51:41 51 minutes, 41 seconds We are suffised from the internal sources. I would say we're not married because they are independent companies but at the same time the benefit of 51:50 51 minutes, 50 seconds having this as an ecosystem manufacturing entity that is what gives us the leverage of price and the leverage of uh I would say the benefit 51:58 51 minutes, 58 seconds of bidding for these projects. So we stay for clean rooms exclusive to Faptech technologies clean rooms limited 52:06 52 minutes, 6 seconds for air handling units and for other products at the same time I must say depending on the makes depending on the 52:13 52 minutes, 13 seconds delivery timelines offered by our vendors by our partners that is what our selection strategy is. So if the makes 52:21 52 minutes, 21 seconds are um specific to Africa or specific to the US or Europe Euro certified I would say then we change the specifications and the make that cers to the client. 52:33 52 minutes, 33 seconds Yeah. Okay. Thank you so much. 52:35 52 minutes, 35 seconds Thank you. I would now quickly just get into the questions in the chat box. 52:40 52 minutes, 40 seconds Number one uh Mr. Vikas Gupta has asked multiple questions. Can we expect more regular updates to draw to investors rather than waiting full quarter? Sir uh 52:48 52 minutes, 48 seconds if you follow us on Fabtech Technologies Limited on X, we are updating at least thrice a week of the new projects that 52:55 52 minutes, 55 seconds are coming out also of the existing techn technological updates and upgrades that we are doing to our systems and what our positioning in the market is. 53:05 53 minutes, 5 seconds So we are doing our best to increase investor relations, communication and momentum. So that uh I I would be glad 53:14 53 minutes, 14 seconds if AC could post our X page on the chat box. Number two, there were two questions, one by Duv and one by Falak. 53:22 53 minutes, 22 seconds Other income has more than doubled since 2025 to 21 Kores. Could you tell us the reason for the increase in other incomes 53:29 53 minutes, 29 seconds and the breakdown of this 21 K? Sure. So basically other income the major component of 20 K is around 12 K of for foreign income forex. 53:40 53 minutes, 40 seconds So different exchange rate and the balance amount uh 7 o is from the interest on the fds which we have uh parked from the IPO fund and the other 53:49 53 minutes, 49 seconds empties for our lending uh facilities and there's another question there is 100 receivables you mentioned in Dubai 53:58 53 minutes, 58 seconds and Sabi how is the risk being mitigated if the war situation worsens most of them is a last quarter billing therefore it's looking such a 54:06 54 minutes, 6 seconds every year at this quarter you will see like this because the maximum billing is happening in the Q4 but in case if you go with Q1 and Q2 the receivable will be 54:15 54 minutes, 15 seconds reduced immediately and I don't think we we don't think any kind of a risk here because everything is covered under the 54:21 54 minutes, 21 seconds LC's and all the clients all the sides are stable in summary everything is covered in terms of the 100 receivables 54:28 54 minutes, 28 seconds and the Q4 billing which has taken place and the Q1 and Q2 that you will see the risk is already mitigated 54:36 54 minutes, 36 seconds for Middle There are no questions in the chat box. 54:42 54 minutes, 42 seconds I would like to we would be very happy to answer any more questions. 54:48 54 minutes, 48 seconds Investors, the floor is still open for Q&A session. I request you to raise your hands or drop your questions in the chat box. Thank you. 55:09 55 minutes, 9 seconds Okay. Uh there is a question by Anik Madwani regarding the margins. Last year net profit shot up due to one-time gain 55:18 55 minutes, 18 seconds and this year we saw the margins contracted at operating and net level. What are we looking at going forward? 55:25 55 minutes, 25 seconds And what is the current and previous RMC percentage of sales? And due to global supply chain issues, do we expect to 55:33 55 minutes, 33 seconds build up inventory? And if that's the possibility then the margins will shrink further. 55:39 55 minutes, 39 seconds Just to personally answer your last question, we never build up inventory. 55:42 55 minutes, 42 seconds That's why the lean model always helps in executing the project. It is based on JIT system just in time manufacturing 55:49 55 minutes, 49 seconds and it is based on procurement as per design and engineering VOQs. So we don't face a challenge in terms of inventory 55:57 55 minutes, 57 seconds stocking. So the margins don't shrink on that aspect. But I would love to hand over in terms of RMC of percentage of 56:04 56 minutes, 4 seconds sales and operating and so RMC as a percentage of sales would be between 44 to 46%. If you look at the 56:12 56 minutes, 12 seconds material cost sorry contribution margin around 55% the contribution margin will be between 56:19 56 minutes, 19 seconds around 45% is what we target 56:26 56 minutes, 26 seconds and an please you can go forward 56:35 56 minutes, 35 seconds are we audible Aniket you can ask your question I think that's all you He just posting. 56:44 56 minutes, 44 seconds Okay, sir. You can unmute yourself if you have more questions. 57:02 57 minutes, 2 seconds Okay. Nan Sha has asked a question. Is there any cancellation risk in current geopolitan political environment from current order book? 57:11 57 minutes, 11 seconds No, if there is a justification needed, I'll tell you why. Like I said, emerging 57:19 57 minutes, 19 seconds markets are moving towards localization even more. There has been no cancellation yet because the clients that we confirmed were based on their 57:28 57 minutes, 28 seconds cash flows which were positive and that's why we finalized those orders. 57:32 57 minutes, 32 seconds Currently, we're not facing cancellation risks. We have faced delay challenges because the civil aspect got impacted for many green field projects but not cancellation. So we're still positive. 57:47 57 minutes, 47 seconds Uh an question um who can be your direct or indirect listed peers? 57:57 57 minutes, 57 seconds We currently don't have direct or intended listed peers in the theme or main board in India. At the same time, 58:05 58 minutes, 5 seconds uh European players, yes, there are good ones in the market that we compete against Anik's question. So my question was 58:12 58 minutes, 12 seconds regarding the margins last year net profit shot up due to one time game. That is what we answered, right? Yeah. 58:20 58 minutes, 20 seconds Uh Rahel's hand is raised and Babika Singh's hand is also raised. Rahel, please ask your question. Thank you. 58:27 58 minutes, 27 seconds Yes. Hi, good morning. Uh just two three quick questions. Um just to clear my confusion about some things you said, right? Firstly is about you are opting 58:35 58 minutes, 35 seconds and bidding for more pre-engineered and sale infra products. Correct. That's what you said and I think that you said it'll give you more margin stability in 58:42 58 minutes, 42 seconds the future. So just can you explain a little bit in detail how that uh helps you? Secondly, I believe uh in one of the questions about passing on the cost 58:50 58 minutes, 50 seconds to the customers, you said you prioritize the client and you were not able to pass on the cost as such but still you have some variation in the 58:58 58 minutes, 58 seconds contracts. So are they for current contracts or in the future which you take the new ones. So that's another uh confusion I'd like to get cleared on. 59:06 59 minutes, 6 seconds And uh going back to your Vivo meet conference, you know the conferences you had attended in uh conducted by Vivo and 59:13 59 minutes, 13 seconds then one in March by Ahant, you had given an FI27 uh revenue targets of like 530 to 600 crores but right now you are seeing just 25% on the topline growth. 59:23 59 minutes, 23 seconds So that is not you know uh matching the numbers you had given and also are you on track for your FI28 pad guidance of 59:30 59 minutes, 30 seconds 12 to 14% given we have just shrunk in this current year. Thank you. 59:36 59 minutes, 36 seconds Okay. Thank you Rahul. Thank you for the summary of questions as well. Number one um there is a difference of communication when we're talking about 59:43 59 minutes, 43 seconds consolidated and standalone numbers. So what you saw during the Ahan presentation those numbers would remain the same and consistent for consolidated 59:51 59 minutes, 51 seconds numbers. Number two, u variation clauses are for current and future contracts. So it covers both sides, the current 59:59 59 minutes, 59 seconds scenario and future scenarios that may impact or may tentatively impact our side of the business. 1:00:06 1 hour, 6 seconds I hope two questions were answered. You went really fast. Could you please bring me back to the first one? So uh uh s 1:00:15 1 hour, 15 seconds actually what whatever we are discussing right now it's a very sustained growth which we are maintaining 25 to 30% and all but we do have always stretch target 1:00:24 1 hour, 24 seconds and definitely those stretch target help us to give the more numbers so sure when 1:00:31 1 hour, 31 seconds we say something we believe it and we deliver could you bring us back to your first question yes yes yes sorry for rushing there I I 1:00:39 1 hour, 39 seconds thought we were short on time just coming back to the part where you said you are bidding for more pre-engineered and civil entrepreneurs. 1:00:46 1 hour, 46 seconds Perfect. So that helps you with the margin. Yes. Yeah. 1:00:49 1 hour, 49 seconds Okay. Number one, the the way that it helps us as the margin increase is when we're able to increase our ticket sizes, 1:00:56 1 hour, 56 seconds it gives us the opportunity of larger procurement in specific scopes. So one opportunity remains there where we're able to procure from multiple different 1:01:05 1 hour, 1 minute, 5 seconds vendors for PEBB because we're not again manufacturers of pre-engineered building steel structures. Number two, the way 1:01:13 1 hour, 1 minute, 13 seconds that we're able to protect and increase our margins is by controlling the timelines. Any project's most important 1:01:20 1 hour, 1 minute, 20 seconds juncture is always the timeline and the most important asset is always the timeline. Contractors get impacted by 1:01:27 1 hour, 1 minute, 27 seconds timelines increases. Clients get impacted by when the project gets delayed. When we're able to control the project timeline from the steel 1:01:34 1 hour, 1 minute, 34 seconds structure, PE solar uh aspect, our core infrastructure, critical infrastructure always becomes part of this. That's how 1:01:42 1 hour, 1 minute, 42 seconds we're able to protect our margins and increase our margins. There was a second question. 1:01:52 1 hour, 1 minute, 52 seconds No, I believe you've pretty much covered it all. Just the 12 14% PAT guidance which you had given uh in one of the conferences, is that still on track? 1:02:01 1 hour, 2 minutes, 1 second We're on 528. That was I I believe we're on. Oh, okay. Perfect. Thank you so much. All the best to you. Thank you. 1:02:09 1 hour, 2 minutes, 9 seconds Bavita, your hand is raised. 1:02:22 1 hour, 2 minutes, 22 seconds Yeah. Uh just a quick understanding on the domestic business. Uh so uh how is the order book because like we are in 1:02:29 1 hour, 2 minutes, 29 seconds India also uh we are doing some projects there. So is there any project uh we are doing in India side or it's all um other geographies? 1:02:40 1 hour, 2 minutes, 40 seconds Okay one point uh India's side of the business which is India focused clean rooms resides with Fabtech technology screen rooms limited. 1:02:51 1 hour, 2 minutes, 51 seconds So we don't do projects in India personally as Pap technologies limited. 1:02:56 1 hour, 2 minutes, 56 seconds So I will not be able to address the order pipeline of FTCL. At the same time I would love to say they're doing well. 1:03:04 1 hour, 3 minutes, 4 seconds We know it but we will not be able to address it right now. 1:03:07 1 hour, 3 minutes, 7 seconds So but I tell one thing that in India generally the concept of complete GC is 1:03:14 1 hour, 3 minutes, 14 seconds not uh not uh in practice. So what they do they they break the complete GC contractor to 1:03:23 1 hour, 3 minutes, 23 seconds multiple things out. But recently we got a very good client who were interested in GC and 1:03:30 1 hour, 3 minutes, 30 seconds GC is the general contracting uh the overall project overall project what we do in uh uh out of India. Same thing 1:03:38 1 hour, 3 minutes, 38 seconds right now we are executing one project as a GC complete project end to end that is in India. So in case if there is a 1:03:46 1 hour, 3 minutes, 46 seconds need where the GC concept is available with the Indian uh uh client definitely we don't hesitate to participate. 1:03:58 1 hour, 3 minutes, 58 seconds Thank you. 1:03:58 1 hour, 3 minutes, 58 seconds So just to one highlight when we talk about this one project the reason that it has been undertaken as fap technologies limited is because it is a 1:04:07 1 hour, 4 minutes, 7 seconds vaccine product development facility in Mumbai. It's called GCMC and that is helping us with a lot of 1:04:16 1 hour, 4 minutes, 16 seconds international project referrals and influence and it was a very strategic decision to execute this project in India. 1:04:30 1 hour, 4 minutes, 30 seconds I hope we've answered your question. Yes. Yes. 1:04:34 1 hour, 4 minutes, 34 seconds And and Anik Madwani has asked a question. What was the major reason behind the margin this year apart from 1:04:42 1 hour, 4 minutes, 42 seconds the project mix and what margins are we targeting going forward at operating and net 1:04:51 1 hour, 4 minutes, 51 seconds at operating level we continue to you know uh operating as in contribution margins we we'll uh ideally do around 45%. 1:04:59 1 hour, 4 minutes, 59 seconds And at EIDA level know our target is to do around 13 to 14% and pat level will be between 9 to 11% is what our internal 1:05:08 1 hour, 5 minutes, 8 seconds targets are and then the guidance are and like I previously mentioned an uh 1:05:15 1 hour, 5 minutes, 15 seconds there were three main factors one was capability enhancement which focuses on talent acquisition one was the RMC cost 1:05:22 1 hour, 5 minutes, 22 seconds which grew up by close to 33% and the last was the execution cost which was up to 43% % which increased due to the 1:05:30 1 hour, 5 minutes, 30 seconds remobilization of the installation team amidst the geographical conditions. 1:05:34 1 hour, 5 minutes, 34 seconds Those were the main three reasons apart from the project mix and apart from the strategic call that impacted the margin this year. 1:05:43 1 hour, 5 minutes, 43 seconds Okay, I don't see any more hands up. I don't see any more questions in the chat box. 1:05:55 1 hour, 5 minutes, 55 seconds So I guess we have covered majority of the questions with this. Now I would like to hand over this session to Aman sir to give us the closing remarks. Over to you sir. 1:06:04 1 hour, 6 minutes, 4 seconds Okay. It was a pleasure having all of you here and thank you for joining us. 1:06:10 1 hour, 6 minutes, 10 seconds FY26 has been a defining year for Fabech Technologies Limited and in many ways not something new for us 1:06:19 1 hour, 6 minutes, 19 seconds across markets. Many [clears throat] of our clients refer to us as the war team. 1:06:24 1 hour, 6 minutes, 24 seconds It's a reflection of how we operate with resilience, accountability, and a long-term commitment to building enduring partnerships. 1:06:35 1 hour, 6 minutes, 35 seconds We delivered strong topline growth of over 28% backed by a robust global execution pipeline and a carry forward order book exceeding 900 kores. 1:06:48 1 hour, 6 minutes, 48 seconds This reflects the trust that we have built over the years in delivering complex regulated infrastructure across both emerging and developed markets. 1:06:59 1 hour, 6 minutes, 59 seconds It also reinforces something we consistently stand by. We are not a quarter-to-arter story. We will stand by 1:07:08 1 hour, 7 minutes, 8 seconds our yearly guidance. We build with a long-term perspective and our performance reflects that. 1:07:15 1 hour, 7 minutes, 15 seconds This year however came with extraordinary challenges. 1:07:20 1 hour, 7 minutes, 20 seconds Global geopolitical tensions and regional conflicts disrupted supply chains impacted freight economics 1:07:28 1 hour, 7 minutes, 28 seconds and introduced volatility across the key markets. These factors did exert pressure on profitability 1:07:35 1 hour, 7 minutes, 35 seconds [clears throat] 1:07:35 1 hour, 7 minutes, 35 seconds particularly during the critical execution phase of the last quarter. But what is important and what we want to highlight is how we responded. 1:07:47 1 hour, 7 minutes, 47 seconds Our integrated in-house model enabled us to navigate these disruptions far more effectively than fragmented EPC structures. 1:07:57 1 hour, 7 minutes, 57 seconds We maintained delivery timelines, protected client commitments, and ensured continuity across critical healthcare projects despite force major. 1:08:08 1 hour, 8 minutes, 8 seconds mobilizing our installation team and rising logistic costs. 1:08:14 1 hour, 8 minutes, 14 seconds Our localization strategy in the UAE and Saudi Arabia is now translating into results. For us, becoming local is not a choice, it is a necessity. 1:08:26 1 hour, 8 minutes, 26 seconds We have established strong local teams and subsidiaries currently supported by India and progressively moving towards greater independence. 1:08:37 1 hour, 8 minutes, 37 seconds At the same time, we have already built the infrastructure required for the next phase of growth. 1:08:43 1 hour, 8 minutes, 43 seconds As we scale further, this positions us for improved cost efficiencies and operating leverage over the coming years. 1:08:52 1 hour, 8 minutes, 52 seconds Our inorganic investments are also beginning to show results with platforms like Mark Maker contributing to growth 1:09:00 1 hour, 9 minutes and we continue to evaluate similar strategic opportunities. 1:09:05 1 hour, 9 minutes, 5 seconds Looking ahead, our visibility remains strong. 1:09:09 1 hour, 9 minutes, 9 seconds Based on our current order book and pipeline, we're confident of delivering close to 25% or more growth along with a 1:09:17 1 hour, 9 minutes, 17 seconds progressive improvement on profitability. 1:09:22 1 hour, 9 minutes, 22 seconds We're moving deliberately towards higher value, more complex projects, improving the project mix and strengthening the 1:09:28 1 hour, 9 minutes, 28 seconds regional execution platforms, enhancing operational efficiencies. These will be the key drivers in improving margins over time. 1:09:38 1 hour, 9 minutes, 38 seconds At FATIC, we're not building on short-term impulse, not merely what is perceived as an EPC company. 1:09:46 1 hour, 9 minutes, 46 seconds We are a platform building India's global life sciences infrastructure company operating in all pharmaceutical developing and developed markets. 1:09:58 1 hour, 9 minutes, 58 seconds Tough situations have made us explore newer amazing options to build resilience, discipline and execution 1:10:05 1 hour, 10 minutes, 5 seconds excellence and sustain profitability and this time it has again prepared us for becoming better. I thank you for the 1:10:14 1 hour, 10 minutes, 14 seconds opportunity for this earnings call and I wish you all a great week. 1:10:18 1 hour, 10 minutes, 18 seconds Thank you. Thank you everyone for attending today's conference call. Thank you Ashwin sir. Thank you Aman sir and thank you Karan sir. Also thanks to 1:10:26 1 hour, 10 minutes, 26 seconds Shira. For further queries participants, you can reach out us at info@acaladvisor.com. Thank you everyone. Have a good day. 1:10:35 1 hour, 10 minutes, 35 seconds Great. Thank you.